Have you seen a great offer for your dream car or do you just want to treat yourself to a new car? Even if your savings are not enough, it doesn’t have to be an obstacle. Have a look for a bad credit car financing – there are many offers!
Find out bad credit car financing
It is worth comparing the different bad credit car financing offers and find the right. With an inquiry to your car dealer, you can find out how much discount you would get with an installment purchase or a direct purchase. Online and direct banks often offer online loan calculators, which you can use to calculate exactly what costs you will incur. But be careful: the interest rates also depend on their creditworthiness, which the banks sometimes only check after the contract has been signed. The best way to avoid unpleasant surprises is to ask for a credit check beforehand. So you can choose the cheapest loan for your car and you are on the safe side.
Credit for your car from car banks
Auto bank loans usually offer very good conditions, as part of the interest is borne by the car dealer. You can ask the car dealer for installment financing and take advantage of the attractive financing options. The interest rates for a loan of 10,000 USD are five to seven percent. You will hardly find better conditions. A disadvantage of this variant, however, is that the dealer can only offer them small discounts when buying a car, as the financing of the loan will burden them.
The alternative: online and direct banks
Another way to get credit for your car is online and direct banking. The somewhat higher interest rate is offset by a large discount at the car dealer since the dealer does not have to co-finance their loan. For a 10,000 USD loan, you have to expect an interest of between six and eleven percent with this variant. You can act as a cash payer when buying a car and have a better negotiating position. Discounts of 10 – 20% are currently easy to achieve, as many car dealers have sales problems and are happy about every car sold. With a purchase price of 20,000 USD, this corresponds to savings of up to 4,000 USD compared to installment financing with car banks.